Minister pledges fairness for all
PENSIONS are the hot topic at the moment. But in the Government, they’re also a hot potato which seemingly no one wants to take on. This week JUSTIN HARPER tackled the new secretary of state for Work and Pensions, John Hutton — the fourth minister in just over a year to take up the post — and asked him how he intends to handle the issue. JOHN HUTTON has pledged to put women at the heart of the pensions reforms the Government is planning.
When David Blunkett took over the Department for Work and Pensions in May, he said the way women had been treated, with reduced pensions for taking time off to have children, was a scandal. Mr Hutton says: ‘ Fairness is a big part of our agenda. It’s not acceptable that women who are leaving work to have children and be at home are penalised. Home Responsibilities Protection ( HRP) will smooth this out by 2025, but we are not going to wait 20 years. We want to act now.’
Having been in the job for less than a week, he is still getting to grips with a pensions system many regard as being in disarray. But first, Mr Hutton has two major reports to deal with.
At the end of the month, Pensions Tsar Adair Turner will publish his report into what Britons need to do to solve the impending pensions crisis.
His first report high- Harper, right, puts the questions to John Hutton lighted a number of
thinking company options that may have to
pensions were safe. More be implemented to make
than 70,000 people have sure people retire with a
become victims of company decent income. None of pension schemes these options will be easy
that have wound up leaving to swallow, with working them with next to past retirement, saving
nothing. more into our pensions, or
If the Parliamentary higher taxes to pay for
Ombudsman finds the pensions all possibilities.
Government guilty, it
During our one-to- one,
could trigger huge compensation Mr Hutton tells me: ‘We claims. will need time to reflect on
When I confront Mr the Turner report and will
Hutton on the issue he respond to it next spring.
looks rather vague, but We have to get a national
tells me: ‘We will be prepared consensus on pensions for that report.’ He before we go forward.’
is likely to be given a
I also tackle him on the
crash course in pension climbdown by the Government
wind-ups as a result. on public sector
Pensions campaigner workers’ pensions, with
Ros Altmann says: ‘How only new entrants having
is the Government taking to work until 65, while
this issue seriously with existing employees can
all the changes it is making retire at 60 at tax-payers’ to this vital position? expense. Taking a defensive
They are playing tiddlywinks stance, Mr Hutton with ministers fires back: ‘ You are wrong.
while people are struggling
There are big savings to to survive without be made with new workers
pensions they have been retiring at 65.’
promised.’
Potentially more damaging
As Mr Hutton said with for the Government
typical ministerial understatement: is a report by the Parliamentary ‘This is going Ombudsman
to be a big job for me with into whether the Government
some highly important misled people into
challenges ahead.’